Good progressive setup?

[Lethos]

Having become entirely fed up with stock boxes, I have finally managed to kick myself in the arse and am piecing together my own PC. Being on a very tight budget (we're talking I make less then $100 a week) this is the setup I have come up with:

RAIDMAX Scorpio ATX-868WUP Case
BIOSTAR AM2VCOMB34S AMD Sempron 3400+ AM2 VIA K8M800 Micro ATX Motherboard/CPU Combo

Seagate Barracuda 7200.10 ST3320620AS 320GB 7200 RPM 16MB Cache SATA 3.0Gb/s Hard Drive (I will add a second one later on for backup and extra room)
LITE-ON Black 20X DVD+R
Kingston 2GB (2 x 1GB) 240-Pin DDR2 SDRAM DDR2 667 (PC2 5300) Dual Channel Kit Desktop Memory

Once I get the thing up and running I plan to start upgrading it (I will be buying the whole thing piece by piece as my budget allows probably) first by switching out the stock power supply with this
APEVIA ATX-AS520W-BK ATX 520W Power Supply

And then adding on a graphics card
BIOSTAR V6802XA52 GeForce 6800XT 512MB 256-bit GDDR2 AGP 4X/8X Video Card + Cooling fan

I do plan on putting in a new processor too, but at this point I do not know what would be best. My goal is to first get a decent PC for everyday use (web, light gaming, photoshop 7.0) and then to upgrade to a fairly decent gaming computer (I am going to be going into a computer engineering major some time in the next year or so, and this will probably be my main computer for that too)

That said, any tips, suggestions, compatibility issues, cpu upgrade recommendations?

PS: I will be running XP professional on it when I get the thing operational

[Heartborne]

budget is budget, but the machine you're building there is horribly outdated. In cases like yours I actually do recommend going with a decent prefab because you're better off. Dell has a model for about $600 that I was really impressed with, it even has dedicated video... not that onboard stuff. I don't recall the model number, unfortunately but if you browse their website I'm sure you'll find it.

Even if you want to put together your own rig, with some digging I am sure you can build up something better than that for around the same price. Try using pricegrabber.com to find the lowest prices on your components.

You will need AT LEAST:
-A motherboard that supports dual-core processors, has at least 1 pci-e 16x slot and supports DDR2 memory up to 800 mhz. go with integrated audio.
-A dual-core processor
-A dedicated pci video card with 256 mb or more VRAM
1 GB of DDR2 RAM.

[artp209]

I think a better deal would be a Biostar A770 A2+ MB ($67) and AMD Athlon 64 X2 4200+ CPU ($57) versus the combo for $88.

Art

[Heartborne]

I just posted a new thread about this very topic, so please check it out.

[Lethos]

Yes I saw that, looks good. It's nice to know that I was on the right track though.

[Heartborne]

I would say you were a bit off-track. Everything you listed is quite out of date. It's all right though as long as you're getting it now.